The Law Society noted the recent discussion of the Legislative Council on the Arbitration and Mediation Legislation (Third Party Funding) (Amendment) Bill 2016 (the “Bill”). In the discussion, among other things, a Committee Stage Amendment was moved to delete s. 98G(2) of the Bill. Section 98G(2) provides that “… third party funding of arbitration does not include the provision of arbitration funding directly or indirectly by a person practising law, or providing legal services, whether in Hong Kong or elsewhere.”
The Law Society considered, inter alia, an exclusion of persons practising law or providing legal services from the provision of arbitration funding could inadvertently have a negative impact on (1) the quality of legal services available to arbitration funders, and (2) Hong Kong’s efforts to become a competitive hub for Third Party Funding for arbitration. The Law Society supported the deletion of that section.
A letter setting out the above was sent to the Hon. Dennis Kwok in mid April. A copy of that letter appears at http://www.hklawsoc.org.hk/pub_e/news/submissions/20170413.pdf.